Rates Up From Wednesday’s Lows, But Won’t Spike
Rates were down early as bonds rallied after May’s jobs report showed non-farm payrolls only increased 54k, down sharply from the 232k April gain. But rates have risen a bit as bonds sell on news of new aid for Greece.
Given weaker economic data across the board, rates won’t jump, but the mortgage bonds that rates are tied to are well above their 200-day moving average and unless economic data worsen, we should hold around these levels–at least going into next week. Tomorrow’s WeeklyBasis report will lay that out in more detail. Meantime, below are some May jobs charts, and here’s a primer on how to read jobs reports.
